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True Tax Statements

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Which of the following statements is true?

i. Under the cash method, prepaid income such as rent is usually taxed when received rather than when earned.
ii. Alimony received by the taxpayer is taxable.
iii. Income earned by selling goods on the Internet is taxable.

A. i only
B. ii only
C. iii only
D. i & iii only
E. i, ii, and iii.

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Solution Summary

This solution provides the correct answer with complete explanation to the taxation multiple choice question listed.

Solution Preview

All of the statements are true, so the correct answer is E.

Under the cash method, cash becomes taxable ...

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